Islamabad, Pakistan, December 13, 2011—
IFC, a member of the World Bank Group, is providing a $60 million loan
to Star Hydro Power to support the construction of a private hydro-power
project in Pakistan and increase the country’s supply of renewable energy.
The 147 megawatt run-of-the-river power plant is the largest privately
financed hydro-power development in Pakistan. The Export-Import Bank of
Korea, the Asian Development Bank and the Islamic Development Bank are
also financing the $409 million project.
Star Hydro Power is 80 percent owned by the Korea Water Resources Corporation
and this project will help promote foreign direct investment in Pakistan,
a country where only about 16 percent of hydro-power resources have been
“A reliable power system is essential for the economic development of
Pakistan, and this project will help us towards that goal,” said Byung
Hoon Yune, Vice President of Oversees Business at Korea Water Resources.
“IFC’s support is a vote of confidence in not only our company, but also
in Pakistan’s electricity sector.”
Said Adil Marghub, IFC’s Infrastructure Manager for the Middle East and
North Africa, “IFC’s partnership with Star Hydro, one of our key clients,
enables us to extend additional support to the renewable-energy sector
in Pakistan. We hope this project will stimulate the interest of other
investors in harnessing the country’s favorable hydro resources.”
The project is expected to help alleviate a severe power shortfall in Pakistan
and reduce the country’s reliance on imported fuel for power generation.
Since 1995, IFC-funded projects have helped generate 3,300 megawatts of
power in Pakistan.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,
About Star Hydro Power
Star Hydro Power is majority-owned by the Korea Water Resources Corporation,
Korea’s largest water utility company, and operates 15 dams and 26 hydro-power